EUR/GBP Technical Analysis: Short Trade Setup Established

By DailyFx | August 25, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Pending Short
  • Support: 0.7911, 0.7873, 0.7834
  • Resistance:0.7958, 0.7984, 0.8033

The Euro may be ready to resume its down trend against the British Pound after finding resistance above the 0.8300 figure. Near-term support is at 0.7911, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the July 23 low at 0.7873. Alternatively, a reversal above the 14.6% level at 0.7958 opens the door for a retest of rising trend line support-turned-resistance at 0.7984.

The rising trend line break suggests the corrective upswing initiated in late July has now given way to the dominant downward trajectory. Entering at current levels is unattractive from a risk/reward perspective however and we will opt to establish an order to sell the pair at 0.7972. If triggered, the position will initially target 0.7911 with a stop-loss activated on a daily close above 0.8033.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/GBP Technical Analysis: Short Trade Setup Established

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
    Forex News

    AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

  2. USD/JPY bulls need to take a breath before a new attack at 110.00
    Forex News

    USD/JPY bulls need to take a breath before a new attack at 110.00

  3. Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low
    Forex News

    Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low

  4. GBP/USD nervous below 1.6200, waiting for data
    Forex News

    GBP/USD nervous below 1.6200, waiting for data

  5. Dollar’s Current Bull Leg Strongest since Rally Through Crisis
    Forex News

    Dollar’s Current Bull Leg Strongest since Rally Through Crisis

Trading Center